3. SCHEDULED
BANKS
T
Scheduled commercial banks are those included in the
second schedule of the Reserve Bank of India
1934.
For this, they have to satisfy three conditions:
It must have paid-up capital and reserves of
aggregate value of atleast Rs. 5 lakhs.
Act,
an
It is carrying on the business of banking in India.
It must be a corporation or cooperative society and
not a partnership or sole proprietorship firm.
4. SCHEDULED
BANKS
INDIAN BANKS
Registered or incorporated
India.
FOREIGN BANKS
in Registered or incorporated in
their home country, not in
India.
They have their office and/or
branches in India.
They play an important role in
shaping the attitude and
policies of foreign govt.,
companies and their clients
towards India.
They have their headquarter
in India and can have
branches all over India.
They can also operate in
foreign countries.
5. PUBLIC SECTOR
BANKS
Public sector banks are
banks in which the
government has a major
holding.
At least 51% ownership
is vested with the
government.
,,,"
The shares of these
are listed on stock
exchanges.
banks
6. STATE BANK OF
INDIA
Government of India
entered in commercial
banking when it took
over Imperial Bank of
India and converted into
State Bank of India on 1
July 1955.
It was first one to make
public issue in 1993-94
after which the share
holding of RBI has come
down to 68.93%.
State Bank Group
State
State
State
State
Bank
Bank
Bank
Bank
of
of
of
of
Hyderabad
Patiala
Travancore
Bikaner &
Jaipur
State
State
State
Bank
Bank
Bank
of
of
of
Maysore
Saurashtra
Indore
7. NATIONALIZED
BANKS
In 1969, 14 banks with deposit base
of Rs. 50 Crores or more were
nationalized. In 1980,, 6 more
banks were nationalized.
Andhra Bank
Punjab National
Indian Overseas
IDBI
Allahabad Bank
Syndicate Bank
UCO Bank
Dena Bank
Bank
Bank
This step brought more than 90% of
commercial banking in the public
sector.
The main function of nationalised
bank is provide finance for the
housing projects, health facilities
and increase the chance to
providinig the products and
services to the people of rural areas.
8. PRIVATE
BANKS
J ,
All those banks in which
majority of stake are held by
private individuals
The banks, which came in
operation after 1991, with the
introduction of economic
reforms and financial sector
reforms are called "new
private-sector banks“
New banks are strategic in
their thinking and operations.
9. NON SCHEDULED
BANKS
2nd
The banks which are not included in the
1934.
schedule of RBI Act,
These also have to maintain statutory cash reserve but not with
RBI.
Their banking activities are limited, e.g., they cannot deal in
foreign exchange.
The share of these banks are almost nil.
10. REGIONAL
RURAL
BANKS
Features of RRB:
They were set up on the
recommendation of Narasimham
Committee in 1975.
The objective was to provide credit
and other facilities to small and
marginal farmers, agricultural
labours and artisans.
RRBs are working in all states
except GOAand Sikkim.
They are governed by Regional
Rural Bank act, 1976
50% capital is provided by central
govt., 15% by state govt., 35% by
sponsoring public sector bank.
The area of RRB is limited to only a
region, comprising of some district
of a state
These banks grant loan only to the
rural agriculture sector and small
artisans.
The lending rates would be some
what lower than the commercial
banks.
These are intended to eliminate
money lenders.
These banks are to supplement the
effort of cooperative banks.
11. COOPERATIVE
BANKS
Feature of cooperative banks:
Cooperative banking is a
small scale banking carried
on a no profit no loss basis
Government sponsored, supported
and subsidized financial agencies in
India.
Work on the principle of cooperation,
self help and mutual help.
They function on “no profit no loss”
basis.
Perform limited banking functions.
Some of them are scheduled banks
but most are non- scheduled banks.
Cooperative banks are financial
intermediaries only because a
significant amount of their
borrowings is from the RBI,
NABARD, central and state
government and cooperative apex
institutions.
for mutual
help.
cooperation and
Engaged in financing rural
and agricultural development.
They are established under
the Cooperative Credit
SocietiesAct of 1904.
